Bitcoin has done very little over the last couple of weeks, and the last couple of days have only put a bit of an exclamation point on it. After all, the market is currently trading between the 50-Day EMA above, and the 200-Day EMA below. Because of this, a lot of technical traders will start to look at this through the prism of being a little squeeze, and the fact that we are hanging about the $26,000 level again tells you just how uncertain the market is right now.
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It is worth noting that the 200-Day EMA currently sits just above the $25,000 level, which is also coinciding with the crucial 50% Fibonacci level. Because of this, you could make an argument that perhaps the bulls are trying to take over again, but there is so much noise at the moment you probably have a bit of time before you can actually make that claim.
If the market were to break above the $28,000 level, then it’s possible that we could see Bitcoin go looking to the $30,000 level, where we had pulled back from. The $30,000 level of course is very psychologically important, and therefore it’s worth noting as a major ceiling in the market.
On the downside, the market were to break down below the $25,000 level, and then it is possible that we could go down to the $24,000 level. After that, we will have broken through the 61.8% Fibonacci level and go looking toward the beginning of the latest move, which is just below the crucial $20,000 level. That being said, it looks as if in the short term the sellers are struggling to hang on to any type of strength.
Keep in mind that Bitcoin is very sensitive to risk appetite, and that is all over the place at the moment. You will have to pay close attention to other factors such as what the stock markets are going, has the two markets tend to have a high correlation, especially when looked at through the prism of Bitcoin and the NASDAQ 100. With this, you can use the NASDAQ 100 as a secondary indicator.
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